sunny.png
Saturday September 19th, 2020 12:27PM

US stocks bob around record highs as trade euphoria fades

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — The S&P 500 teeter-tottered around its record on Tuesday, as investors mull what exactly will come of the latest truce in the U.S.-China trade war.

Trading was relatively quiet around the world ahead of Wednesday's half day of trading for U.S. markets and Thursday's closure for Independence Day. It was a return to reticence for the S&P 500, which had jumped to a record a day earlier after presidents Donald Trump and Xi Jinping of China agreed to resume trade negotiations.

The United States agreed not to impose additional tariffs on the world's second-largest economy, and the detente is good news for markets. But tariffs in place have already hurt global economic growth, and investors see that the two side still face the same differences that caused talks to break down earlier.

U.S. stock indexes bobbed up and down, and European and Asian markets were mixed.

Treasury prices and gold both pushed higher, while the price of crude oil slid. Those could be seen as indications of rising nervousness among investors, but one measure of fear in the stock market — the VIX index — was down by more than 2% for the fourth day in a row.

KEEPING SCORE: The S&P 500 was virtually flat, as of noon Eastern time, after flitting between small losses and gains in the morning. If it edges higher, it would close at a record for the seventh time this year.

The Dow Jones Industrial Average was down 12 points, or less than 0.1%, at 26,705, and the Nasdaq composite was down 0.2%.

WHAT'S NEXT: Companies are lining up to tell investors in upcoming weeks how much profit they made during the spring. Expectations are generally low, and this could be the first time in three years that S&P 500 companies report a back-to-back decline in overall earnings, according to FactSet.

Besides the earnings reports, the next big milestone for markets may be the Federal Reserve's meeting at the end of July. There, many investors expect the Fed to cut interest rates for the first time since the Great Recession in 2008 in the face of slowing economic momentum around the world.

BEEN HERE BEFORE? "Yesterday's optimism in equity markets is beginning to look a little over-eager, with some already drawing worrying parallels to the November 2018 G-20 summit, which was followed up by a dramatic fall for equities," said Chris Beauchamp, chief market analyst at IG.

"The past is not prologue, and the central bank outlook is very different to the end of 2018, as easing comes back on to the agenda, but with volumes drying up ahead of Independence Day and the next earnings season rapidly approaching equities are looking vulnerable to some near-term weakness."

YIELDS: The yield on the 10-year Treasury note fell to 1.98% from 2.03% late Monday and is close to its lowest level since the 2016 election. Yields have been falling since last autumn on worries about a slowing economy and as expectations have climbed for a rate cut by the Federal Reserve.

When bonds are offering lower yields, the regular payments of high-dividend stocks start to look more attractive. Real-estate stocks and utilities were the biggest gainers in the S&P 500, with each sector up at least 0.6%.

DIM SALES: Lighting company Acuity Brands sank 6.5% despite reporting stronger profit for its latest quarter than analysts expected. Revenue was below expectations, and the company cited "ongoing angst generated by trade policy issues" in the market.

TAKING OFF: Delta Air Lines climbed 1% after it gave a profit forecast for the just-completed quarter that was stronger than analysts had been expecting. The carrier said revenue during the quarter was at the high end of its initial expectations, while costs outside of fuel were up just 1% to 2%.

COMMODITIES: Benchmark U.S. crude oil slumped $2.24, or 3.8%, to $56.85 per barrel. Brent crude, the international standard, lost $2.22 to $62.84.

The drop for crude hurt oil stocks, which had the market's biggest declines. Energy stocks in the S&P 500 fell 1.6%, triple the loss of any of the other 10 sectors that make up the index. Halliburton dropped 2.7%, Occidental Petroleum fell 2.6% and ConocoPhillips lost 2.5%.

The price of gold rose $17.50, or 1.3%, to $1,406.80 per ounce.

MARKETS OVERSES: In Europe, the French CAC 40 edged up 0.2%, and the German DAX was up 0.1%. The FTSE 100 in London rose 0.8%.

In Asia, Japan's Nikkei 225 gained 0.1%, South Korea's Kospi slipped 0.4% and Hong Kong's Hang Seng rose 1.2%.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
US stocks bob around record highs as trade euphoria fades
Stock markets around the world teeter-tottered on Tuesday, as investors mull what exactly will come of the latest truce in the U.S.-China trade war
12:06PM ( 9 minutes ago )
House committee files lawsuit over Trump tax returns
A House committee has filed a lawsuit after being denied President Donald Trump's tax returns
12:03PM ( 12 minutes ago )
Fire kills 14 Russian sailors amid submarine speculation
Russia's Defense Ministry says a fire on one of the Russian navy's deep-sea submersibles killed 14 sailors while the vessel was measuring sea depths
12:02PM ( 13 minutes ago )
Associated Press (AP)
Congressman shares video of migrants held at border facility
The chairman of the Congressional Hispanic Caucus disclosed stark video and photos of migrant women being held at a border facility in Texas
11:39AM ( 37 minutes ago )
NASA launches Orion crew capsule to test abort system
NASA launches test version of its Orion capsule to demonstrate the abort system meant to save astronauts
11:28AM ( 47 minutes ago )
Big business to Supreme Court: Defend LGBTQ people from bias
More than 200 corporations urge US Supreme Court to rule that federal civil rights law bans job discrimination on the basis of sexual orientation and gender identity
11:26AM ( 49 minutes ago )
AP Business
Trade truce euphoria eases, and markets tread water
Stock markets around the world teeter-tottered on Tuesday, as investors mull what exactly will come of the latest truce in the U.S.-China trade war
10:18AM ( 1 hour ago )
Plane was sold months before it crashed in Texas, killing 10
Officials haven't released the identities of 10 people killed in a small plane crash at a suburban Dallas airport, but the aircraft's former owner says he sold it this year to a Texas-based company
5:01PM ( 19 hours ago )
Kaley Cuoco takes a dramatic turn after 'Big Bang Theory'
Kaley Cuoco is making a big move after wrapping 12 seasons with "The Big Bang Theory," with a production deal that includes a drama series
12:03PM ( 1 day ago )
AP Business - Corporate News
Trade truce euphoria eases and markets tread water
Global stock markets traded in fairly narrow ranges Tuesday as investors moved on from the latest truce in the costly U.S.-Chinese trade war.
9:00AM ( 3 hours ago )
Japan official to Kardashian West: Kimono belongs to Japan
Japan's trade minister says the kimono belongs to Japan _ not to Kim Kardashian West's shapeware brand
8:13AM ( 4 hours ago )
Global stocks mixed after Wall Street record on trade truce
Global stocks mixed after Wall Street benchmark hits new high following US-China trade truce
5:11AM ( 7 hours ago )
AP Business - Economy
OPEC extends oil production cuts amid weaker demand outlook
The oil producers' cartel, OPEC, is considering a six- to nine-month extension of its current deal to cut production amid weakening demand due to slowing global economic growth
5:27PM ( 18 hours ago )
S&P 500 hits all-time as US-China trade truce spurs optimism
Wall Street kicked off July with a record high for S&P 500 index after a cease-fire in the U.S. trade war with China put Wall Street in a buying mood
5:15PM ( 19 hours ago )
US stocks climb as traders welcome US-China trade cease-fire
Stocks marched broadly higher late Monday afternoon after a cease-fire in the U.S. trade war with China put Wall Street in a buying mood
3:43PM ( 20 hours ago )
AP Business - Financial Markets
Non-OPEC members back cartel's extension of production cuts
OPEC members and other major oil producing nations have finalized a plan to cut oil production for another nine months in a bid to shore up prices at a time of waning demand
8:35AM ( 3 hours ago )
OPEC confident non-members will back oil cut extension
Major oil producing nations are meeting in Vienna for a second day, with OPEC members expressing confidence non-members of the cartel will sign off on a deal to extend cuts for another nine months
6:22AM ( 5 hours ago )
Iran breaches uranium stockpile limit set by nuclear deal
Iran has broken the limit set on its stockpile of low-enriched uranium by its 2015 nuclear deal with world powers
9:34PM ( 14 hours ago )
AP Business - Industries
International forum: Don't expect cheap money to do it all
An international forum for central bankers is warning that the global economic recovery will need more than just support from the likes of the U.S. Federal Reserve to get past its current shaky stretch.
8:19AM ( 2 days ago )
Stocks close out rocky quarter with solid gains
Wall Street ended a wobbly week with broad gains Friday, closing the books on June with its biggest monthly gain since January
5:16PM ( 3 days ago )
Stocks indexes edge higher to finish off a wobbly week
Stocks are edging higher on Wall Street as investors close out a wobbly week with an eye on U.S.-China trade talks
3:38PM ( 3 days ago )
AP Business - Financial Services
House committee files lawsuit over Trump tax returns
A House committee has filed a lawsuit after being denied President Donald Trump's tax returns
12:03PM ( 12 minutes ago )
Fire kills 14 Russian sailors amid submarine speculation
Russia's Defense Ministry says a fire on one of the Russian navy's deep-sea submersibles killed 14 sailors while the vessel was measuring sea depths
12:02PM ( 13 minutes ago )
Trump promises tanks, 'biggest ever fireworks' on July 4
President Donald Trump is promising military tanks along with 'incredible flyovers & biggest ever fireworks!' Fourth of July in Washington
11:53AM ( 22 minutes ago )
Delta raises outlook for second-quarter financial results
Delta Air Lines cites rising revenue while increasing its forecast of earnings per share for the second quarter
11:46AM ( 29 minutes ago )
French protesters block Amazon sites over climate, jobs
Environmental activists are disrupting Amazon sites in France
11:46AM ( 30 minutes ago )